Nepal Life Insurance (NLIC) Net Profit Rises Significantly by 237.29% in Q2; Life Insurance Fund Stands at Rs. 1.50 Kharba
Sun, Feb 5, 2023 9:03 AM on Financial Analysis, Stock Market, Latest,
Nepal Life Insurance Company Limited (NLIC) has reported growth in net profit by a huge margin of 237.29% in Q2. The company reported a net profit of Rs. 44.01 crores compared to Rs 13.04 crores in the corresponding quarter of the previous year.
The paid-up capital of the company stands at Rs. 8.20 Arba and reserve and reserve and surplus stood at Rs. 48.04 Crores. Its life insurance fund increased by 20.84% to Rs. 1.50 Kharba and the contingent fund stood at Rs. 83.36 crores.
The net premium stood at Rs. 18.40 Arba. The agent commission decreased by 16.62% indicating the company had lower operating cost which has impacted the net profit of the company. The company's net claim payment increased by 15.55% to Rs 8.44 arba till Q2. The number of policies stood at 1,185,474.
NLIC also reports the write-back (reversal) of possible losses amounting to Rs. 15.35 Crores which has also positively impacted the profitability of the company for this period.
The annualized EPS stood at Rs. 10.73 and net worth per share stood at Rs. 116.01. The company traded at a P/E multiple of 68.44 times.
The company had decided to distribute a 15.7895% cash dividend (including tax) from its paid-up capital for the Fiscal Year 2077/78.
Major Financial Highlights
| Particulars (In Rs '000) | Nepal Life Insurance | ||
| Q2 2079/80 | Q2 2078/79 | Difference | |
| Paid Up Capital | 8,207,966.55 | 7,199,970.66 | 14.00% |
| Reserve and Surplus | 480,449.23 | 1,752,523.20 | -72.59% |
| Life Insurance Fund | 150,856,482.81 | 124,839,354.92 | 20.84% |
| Contingent Fund | 833,649.21 | 719,758.06 | 15.82% |
| Net Premium | 18,400,045.33 | 18,110,316.80 | 1.60% |
| Re-Insurance Income | 7,870.12 | 13,337.90 | -40.99% |
| Income from Investment, Loan and others | 6,058,123.73 | 4,209,441.95 | 43.92% |
| Claim Payment (Net) | 8,442,531.45 | 7,306,634.36 | 15.55% |
| Provision for Losses | -- | 176,668.67 | |
| Provision Written Back | 153,540.58 | -- | |
| Agent Commission | 1,538,051.79 | 1,844,682.23 | -16.62% |
| Transferred to Life Insurance Fund | 14,682,383.67 | 13,841,083.44 | 6.08% |
| Net Profit | 440,160.64 | 130,499.49 | 237.29% |
| No of Policies | 1,185,474.00 | 1,386,055.00 | -14.47% |
| Annualized EPS (In Rs.) | 10.73 | 3.63 | 195.87% |
| Net Worth per Share (In Rs.) | 116.01 | 134.34 | -13.64% |
| PE Ratio | 68.44 | - | - |
